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Property sale contravened B.C. TransitB次元官网网址檚 policy

Sale of warehouse on Garbally Road never went to public tender, admits B.C. Transit

Weeks after the province announced a review of B.C. Transit, new details about the sale of its former warehouse have come to light, raising more questions whether the transit agency is serving the publicB次元官网网址檚 best interest.

Back in 2005, B.C. Transit sold its warehouse at 650 Garbally Rd. to Gordy Dodd, who owns a furniture store nearby, for $3 million.

The warehouse, however, was never listed or advertised as being for sale, contrary to B.C. TransitB次元官网网址檚 own policy.

Neither was it reported to the Victoria Regional Transit Commission, said Frank Leonard, mayor of Saanich and member of the commission.

Leonard has led the charge against B.C. Transit, in part due to its policy of not including the commission in decisions to buy or sell land within the Capital Region.

B次元官网网址淚tB次元官网网址檚 another private sector company thatB次元官网网址檚 out of control,B次元官网网址 he said.

The private sale of a public asset, such as the warehouse on Garbally, is totally inappropriate,B次元官网网址 Leonard said.

B次元官网网址淭he public needs to have confidence that they got the highest and best price. A proper tendering ensures that.B次元官网网址

While B.C. Transit did get four appraisals on the building, before selling it to Dodd for a slightly higher price, it appears the Crown agency likely didnB次元官网网址檛 get the best price possible.

Jim Smith of Scotia Automotive on Douglas Street, adjacent to the warehouse, said he also made inquiries about buying the warehouse in mid 2004.

B次元官网网址淚 was prepared to pay $3.5 million,B次元官网网址 Smith said.

Smith used to work for B.C. Transit and later opposed the agencyB次元官网网址檚 plans for light-rail transit in 2008.

In late 2004, SmithB次元官网网址檚 real estate agent, Dave Philps with DHF, also inquired on his behalf, but without revealing his clientB次元官网网址檚 name.

Philps said he clearly recalls making the call and being told the building wasnB次元官网网址檛 for sale. He asked to be notified B次元官网网址渋f that changes.B次元官网网址

He was never notified.

Yet, in January 2005, B.C. TransitB次元官网网址檚 board of directors B次元官网网址渁uthorized staff to continue negotiating the sale or lease of 650 Garbally Rd.,B次元官网网址 according to documents made public through the Freedom of Information Act.

Reports to the board from that time reveal the City of Victoria made an offer on the property, with the intention of using the land to build housing for the homeless. B.C. Transit made a counter-offer, and the city withdrew.

Then-mayor Alan Lowe recalls price being the deciding factor behind the cityB次元官网网址檚 withdrawal.

B.C. Transit then entertained an offer from Dodd, and they agreed on a price of $3 million. The offer was accepted that April and the deal closed in August 2005.

This summer, Leonard raised similar concerns about B.C. TransitB次元官网网址檚 purchase of land in the Royal Oak industrial park, known as the Glanford property.

B次元官网网址淚 got really upset this year when I heard on the street that they were buying land in Saanich,B次元官网网址 Leonard said.

Joanna Linsangan, B.C. TransitB次元官网网址檚 manager of public relations disputes this claim.

The decision to purchase the property was discussed at the commissionB次元官网网址檚  in-camera meeting in November 2010, five months before it was finalized, she said. Leonard was present at the meeting, she added.

B次元官网网址淲e donB次元官网网址檛 have an obligation to the Victoria Regional Transit Commission for board purchases, but we do consider them and we do inform them,B次元官网网址 she said. The Glanford property will be used as a  provincial re-fit facility and not for use by the Victoria Regional Transit system, she said.

As for the warehouse on Garbally, Linsangan said B.C. Transit had advertised the facility for lease for three years.

B次元官网网址淒uring that time, nobody had approached us for the lease portion, but at one point we were offered a couple of options to purchase the site so we felt that we would move forward with that.B次元官网网址

B.C. TransitB次元官网网址檚 policy regarding property disposal requires that the property B次元官网网址渂e offered for sale by public offering by advertising in the media.B次元官网网址

This was not done, Linsangan confirmed. B次元官网网址淭he administration felt the offer (from Dodd) represented good value,B次元官网网址 she explained.

For his part, Dodd said he first inquired about renting the warehouse. Upon learning it was for sale, he purchased the building unaware of B.C. TransitB次元官网网址檚 policies.

 

 

 

 

 





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